Capitolis, a technology provider for capital markets, announced today that it is launching a new novation service in FX. The new service, Capitolis Novation, was created in collaboration with a number of companies, including HSBC, Citi, and BlueCrest.

Gil Mandelzis, CEO of Capitolis, discussed the new product, saying: “Over the past few months we’ve been working with major market participants on developing an industry solution for novations. We are grateful to the strong support our solution has received from prime brokers, executing banks and leading buy side firms.”

The announcement comes after a busy couple of months for Capitolis. In March of this year, the tech firm raised $29 million in two rounds of financing. Building on that success, the firm launched its FX switching service, Capitolis Switch, in April.

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Streamlining novation

Capitolis Novation, which is expected to go live in the coming weeks, will enable companies to automate FX prime broking and bilateral trading services. This means that the novation process will be automated for both market participants and across FX instruments.

As the service will streamline the novation process, it could be useful in helping firms meet regulatory rules – especially capital requirements. The firm also noted that it could help in managing client credit capacity.

On a more basic level, the Capitolis Novation could prove extremely useful in streamlining what has traditionally been a labor-intensive process. Vincent Bonamy, Head of Global Intermediary Services at HSBC, added that Capitolis Novation would enable the firm to provide greater transparency to its clients.